Abercrombie now expects full year earnings of $2.50 to $2.75, a
full dollar before earlier guidance.

International sales, the key driver of Abercrombie's recent
growth, dove 26 percent during the period, weighing on
results.

Meanwhile, sales in the U.S. declined five percent.

"Macroeconomic conditions remained very challenging during
the quarter, particularly in Europe but also increasingly in the
U.S.," Chief Executive Mike Jeffries said. "In
that context, we will continue to be highly disciplined in our
new store approval process and only commit to stores where we are
confident they are likely to generate a stronger return than
alternative uses of cash."

Jeffries noted that the company's international stores are
substantially more profitable on a per-unit basis, as its
Abercrombie and Hollister brands can often mark up items
internationally.

However, those macroeconomic issues are forcing the company
to slow its global expansion. Abercrombie now expects to open 30
Hollister stores this year, roughly 25 percent lower than earlier
guidance.

The company said it tallied sales of $951.4 million during its
second quarter.